07 February 2013 18:20 [Source: ICIS news]
HOUSTON (ICIS)--Mexico’s sole polyethylene (PE) producer, Pemex, increased the price of all grades of PE by nearly 7% effective on 5 February, a Pemex source said on Thursday.
The increase was applied across the entire line of PE resins.
Pemex has taken the lead with this increase, which is based on the producer’s perception of market behaviour for February.
Importers and distributors of US material have announced their intentions to increase prices in February, but actual implementation of the increase remains to be seen.
It is expected that the early move by Pemex will encourage import sellers to match the hike, as happened in January.
US Gulf producers and distributors are seeking an increase of 4 cents/lb ($88/tonne, €65/tonne) this month, but buyers are resisting the measure.
Prices from importers and distributors of US material in Mexico could go up in February by 4-5% depending on grade.
January demand was deemed as satisfactory, despite initial scepticism about the final implementation of the nominated price increases.
February demand has been initially soft, but sellers contend it is too early in the month to judge results.
Availability of low density polyethylene (LDPE) and high density polyethylene (HDPE) grades is normal for the local producer.
However, linear low density polyethylene (LLDPE) grades will be in short supply during February because the swing plant that makes this grade has been stopped for a week and is currently in process of restarting, the source said.
Prior to the February increase, Mexico’s domestic LDPE prices were at $1,554-1,677/tonne FOT (free on truck), while LLDPE prices were in the range of $1,405-1,662/tonne, according to ICIS. HDPE blow moulding prices were at $1,504-1,582/tonne FOT.
($1 = €0.74)
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